What do you do when all your maternity specialists set up their own maternity hospital and offer to sell it to you for €90m, netting themselves a €40m profit?

Here is a fascinating insight into the power of doctors in Greece.

A team of 30-40 doctors, led by Dr. Lorisios, who normally work at quoted maternity specialist Iaso, are about to open a 145 bed maternity hospital, Rea, near Athens.

They were able to construct the building by borrowing ten times forecast EBITA from the banks, having given personal guarantees. And now they are trying to sell the business, before it opens, to Iaso for €90m, a figure which stockmarket analysts say would net them a €40m profit!

Analysts say the idea is crazy: “Iaso will simply be paying to keep its market, and will end up with an extra hospital which it doesn’t need.”

The story illustrates the power specialists exert in Athens. As one source put it: “They are like footballers, and get paid €1m to €10m a year.”

In maternity, the specialist will typically tell the prospective mother where to have her baby and charge €4,000 for the delivery, with the hospital charging another €4,000.

But a price war looks set to break out.

Iaso and Hygeia, the two quoted healthcare groups who divide the lucrative €276m maternity market between them, face competition not only from REA, but also from Athens Medical, another large quoted group.

Athens Medical has taken over a wing of Errikos Dynan, a not-for-profit hospital, which it and Euromedica have functionally privatised. This is going to be used to provide a low cost alternative to Iaso and Hygeia.

An analyst said: “Because AMC has hired the space, it does not have high overheads, and can come in at very competitive prices with a good brand name.”

Dr. Lorisios also owns Filoktitis, a luxurious rehab centre in the middle of Greece.

Our Analysis: This story illustrates the power that doctors can exert in private healthcare. It demonstrates that much of the Greek hospital is essentially little more than the provision of facilities, where superstars can earn their money. And the superstars can switch freely from one group to another.

Of course, the same 'doctor power' can be seen elsewhere, but it is particularly strong in Greece.